Conforming Mortgage

Conforming Mortgage

A loan eligible for purchase by the two major federal agencies that buy mortgages,Fannie Mae and Freddie Mac.

Conforming mortgages cannot exceed a legal maximum amount, which was $322,700 in 2003; it is raised every year. They must also meet the agencies' underwriting requirements regarding credit, documentation, property features, and other factors.

Amortgage in excess of the conforming maximum, which is identical in other respects, will have an interest rate about 3/8% higher. Borrowers who need an amount larger than the maximum will often do better taking a conforming loan for the maximum and a second mortgage for the excess.

References in periodicals archive ?
The company has a long history of originating FHA, VA and conforming mortgage programs.
During QE1, interest rates in the conforming mortgage market decreased by more than 100 basis points.
As of April 7, 2016, the annual percentage rate (APR) for a 30-year conforming mortgage averaged at 3.668 percent, down from 3.727 percent the previous month.
assets and liabilities, in addition to selling conforming mortgage loans
Petersburg, authorizes insurers to write policies, contracts and endorsements for flood insurance coverage with minimums that match the requirements set by Fannie Mae and Freddie Mac for conforming mortgage loans, according to R.
The more likely failing was because of their private corporation status which required the GSEs to make up for lost market share in the conforming mortgage market through the purchase of Alt-A and other non-conforming products.
Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including lower conforming mortgage loan limits, home inspections and employment losses.
On a 30-year, fixed conforming mortgage loan, credit unions had an average rate of 4.58% with banks close behind at 4.53%.
In the secondary market for conforming loans--those under $417,000--the government-sponsored enterprises Fannie Mae and Freddie Mac buy up conforming mortgage loans.
By law, Fannie Mae and Freddie Mac are limited to operating in the secondary conforming mortgage market and their activities take two broad forms.
If you have a standard conforming mortgage, it is unlikely that any kind of prepayment penalty will be involved.